WSJ: How E-tailers can learn from airline pricing

By ScottJuly 7, 2008

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The Wall Street Journal offered interesting commentary today about the lessons that E-tailers can learn from airlines. The premise is that while many airline travelers consistently seek the cheapest rate to go from POINT A to POINT B, the airlines successfully offer value-adds for an extra price that cater to the needs of particular customer segments.

“The lesson for e-tailers: They, too, can reap rewards from managing demand — in their case, by segmenting customers according to how they want their goods delivered. People who shop online can differ greatly in what they’re willing to pay for delivery, and how flexible they can be on the time and date, when they have to be home to receive the package. If e-tailers adjust their fees and delivery options accordingly, they can not only increase revenue but also efficiency.”